grails upgrade and app debugging issues

I upgraded to rc4 and groovy 1.5.1 and had some problems developing on my HP laptop. New apps did not run and the class files were all scattered in the top level of the project.

Comcast laptop had racetrack at version from grails rc1 to rc3. I did the grails upgrade. The app still ran np. The Problems view showed the same Unbound claspath variable : GRAILS_HOME problem. I imported the groovy-all-1.0.jar file by "import groovy libs into project". No change.

I added the GRAILS_HOME variable in the project properties Java Build Path dialog (libraries) and it errored out with the same "Variable points to a folder: Use 'Extend...'to select an archive inside the folder." WTF? I can hit cancel, the variable is set, and the app no longer has the "Problems" view issues. I can then do an eclipse clean and the app builds, and all the class files are deposited in the project top level. again WTF?

I played with turning off the java builder and it works and makes changes to the .project file. I changed it back.

When running grails test-app in RC-3 all the tests fail.

I reverted the environ to rc1 and reverted the project to what's in trunk. I ran grails test-app and all but 4 of the tests passed. Not sure what it was before (all passed or what)

Did an experiment: Upgraded the project to rc3 and ran test-app in an rc-1 environment: Won't run because the app and environ grails version's don't match!! Did another grails upgrade from rc1 (app was rc3) and it downgraded the app! Tests (except 4) ran successfully.

Upgraded back to rc3 (app) and ran it in rc3 (environ) and the tests (cept 4) passed. Wtf.

Will experiment with TestGrails app.